HONG KONG – Protection gap in the Asian region is forecast to balloon to USD82 trillion by 2020 as more Asians continue to lack the knowledge on the importance of getting insurance coverage to maintain their living standards in the unfortunate event that a working family member is no longer able to provide.
The report, from Swiss Re, estimates that the mortality protection gap for the region widened further between 2010 and 2014.
The size of the gap increased to US$58 trillion in 2014 from US$42 trillion in 2010 for the 13 Asia-Pacific markets covered by the report.
In many markets the growth of life insurance coverage has lagged behind economic growth, increasing income and the cost of living.
The current gap equals about 6.6 times the current amount of life insured in the markets in the report.
Based on current trends, AIA estimates that the gap will continue to grow and increase to a total of US$82 trillion by 20202.
In terms of some specific markets, AIA estimates the figures will grow to US$763 billion in Hong Kong, US$570 billion in Singapore, US$46 trillion in China, US$12 trillion in India, US$1.1 trillion in Indonesia, US$528 billion in the Philippines and US$1 trillion in Thailand.
The widening protection gap underlines the growing need for innovative, compelling and meaningful savings and protection offerings by consumers in markets all around the region.
AIA and Citi, who partnered together at the end of 2013 in signing Asia’s largest bancassurance agreement, said the report was further evidence that more is needed to be done to close the protection gap in the region. – BusinessNewsAsia.com